SWAMPSCOTT — When the Select Board met on Thursday evening, a major element of the board’s discussion centered around the town’s finances and proposed capital updates for Fiscal Year 26.
Director of Finance and Administration Amy Sarro gave a presentation to the board. “When the [interim] town administrator [Gino Cresta] and I were before the board at the last meeting, we were discussing the preliminary budget, and some of the concerns we had regarding the reduction in local receipts,” Sarro said.
She noted the board asked her to present different budget scenarios to see how it can move forward before the interim town administrator’s preliminary budget is recommended in future meetings. “This is just an overview of the revenue estimates that are static in each of these scenarios.”
During the presentation, Sarro noted that the cost of Estimated Local Receipts is $5,093,707. Local receipts refer to the revenue the town collects from sources besides property taxes and state aid. She also said that the total of Enterprise Indirect Costs is currently $1,023,559.
“The interim town administrator and I came up with five different budget scenarios that we ran through and tried to make sure that we were balancing the tax burden on our residents, as well as providing the needed services and the level of services the town has come to expect,” Sarro said.
“In the first scenario, there’s a 2% levy increase plus $425,000 of new growth, which results in only $945,360 of additional revenues,” Sarro noted. She said that, in that scenario, the town would need a reduction of 25 positions, including the closure of one of the town departments. It was not specified which department would be affected. Also included were a reduction in non-mandatory expenses and a hiring freeze with the exception of the town administrator and building commissioner. There would also be a wage freeze for any non-contracted staff.
Sarro added that in the second scenario, the town would utilize a 2.5 % tax levy, which would give it $1,241,539 in estimated revenue. In the third scenario, the town would still utilize a 2.5% tax levy but would still see a reduction in six positions, as well as a continued reduction of non-mandatory expenses.
Scenario four uses $1.5 million which would bring the town’s estimated revenue to $2,741,539, according to Sarro. Scenario five would see the use of the town’s excess levy capacity at $2 million, which would see a reduction of four positions.
